Export Credit Guarantee Corporation of India

The ECGC Limited (ECGC) was established on 30 July 1957 with an objective toprovide insurance cover in respect of risks in export trade. These risk may includeloss of money on account of foreign buyer becoming bankrupt or sudden import orexchange restrictions resulting in stopping of payments etc. [1] The Export CreditGuarantee Corporation of India Limited is a company wholly owned bythe Government of India based in Mumbai, Maharashtra.[2] It provides exportcredit insurance support to Indian exporters and is controlled by the Ministry ofCommerce. Government of India had initially set up Export Risks InsuranceCorporation (ERIC) in July 1957. It was transformed into Export Credit andGuarantee Corporation Limited (ECGC) in 1964 and to Export Credit GuaranteeCorporation of India in 1983. In 2014 August, the Company was again renamed asECGC Limited.History[edit]ECGC of India Ltd, was established in July, 1957 to strengthen the export promotionby covering the risk of exporting on credit.[3] It functions under the administrativecontrol of the Ministry of Commerce & Industry, Department of Commerce,Government of India. It is managed by a Board of Directors comprisingrepresentatives of the Government, Reserve Bank of India, banking, insurance andexporting community.[4]ECGC is the fifth largest credit insurer of the world in terms of coverage of nationalexports. The present paid-up capital of the company is Rs.1200 crores andauthorized capital Rs.5000 crores. [5] Shri Anand Sharma,Former Minister ofCommerce & Industry, Government of India, inaugurated the first overseas office ofECGC in London on September 17, 2013.[6]What does ECGC do?[edit]

Provides a range of credit risk insurance covers to exporters against loss in

Provides Overseas Investment Insurance to Indian companies investing in

joint ventures abroad in the form of equity or loan.

How does ECGC help exporters?[edit]

Offers insurance protection to exporters against payment risks

Provides guidance in export-related activities

Makes available information on different countries with its own credit ratings

Makes it easy to obtain export finance from banks/financial institutions

Assists exporters in recovering bad debts

Provides information on credit-worthiness of overseas buyers

Need for export credit insurance==*****

Payments for exports are open to risks even at the best of times. The risks haveassumed large proportions today due to the far-reaching political and economicchanges that are sweeping the world. An outbreak of war or civil war may block ordelay payment for goods exported. A coup or an insurrection may also bring aboutthe same result. Economic difficulties or balance of payment problems may lead acountry to impose restrictions on either import of certain goods or on transfer ofpayments for goods imported. In addition, the exporters have to face commercialrisks of insolvency or protracted default of buyers. The commercial risks of a foreignbuyer going bankrupt or losing his capacity to pay are aggravated due to thepolitical and economic uncertainties. Export credit insurance is designed to protectexporters from the consequences of the payment risks, both political andcommercial, and to enable them to expand their overseas business without fear ofloss.Cooperation agreement with MIGA (Multilateral Investment Guarantee Agency) anarm of World Bank. MIGA provides:1. Political insurance for foreign investment in developing countries.2. Technical assistance to improve investment climate.3. Dispute mediation service.Under this agreement protection is available against political and economic riskssuch as transfer restriction, expropriation, war, terrorism and civil disturbancesetc...COMMODITY BOARDSThere are five statutory Commodity Boards under the Department of Commerce,Government of India. These Boards are responsible for production, development andexport of tea, coffee, rubber, spices and tobacco. Coconut development Board isalso an autonomous body which functions under the Ministry of Agriculture, Govt. ofIndia. Commodity Boards help their members in product development, productinnovation and technology up gradation. They assist exporters with overseasmarketing, exchange tradedelegati6ns and provide information on export-importpolicies. They conduct research, Formulate policies to promote production and

TeaIndia is the largest producer and consumer of black tea in the world. Tea is grown in16 States in India, of which Assam, West Bengal, Tamil Nadu and Kerala account forabout 96 per cent of the total tea production. The teas originating from Darjeeling,

Assam and Nilgiris are well known for their distinctive quality world over. While teaexports contribute a significant amount of foreign exchange into the country, teaalso contributes revenue to the national exchequer by way of sales tax, agriculturaland corporate income tax, etc. More than two million people derive their livelihoodfrom ancillary activities associated with the industry. The tea industry providesdirect employment to more than a million workers, of which a sizeable number arewomenTea BoardThe Tea Board was constituted as a statutory body on 1st April, 1954 under Section(4) of Tea Act 1953. The Board, with its Head Office at Kolkata, is headed by aChairman. It has 30 Members drawn from different stake holders of the tea Industryand fifteen regional/sub-regional offices. The Board functions as an apex body forthe all round development of the tea Industry. With a view to promote the export ofTea, the Board established three offices abroad viz. London, Moscow and Dubai. Theprimary functions of the Tea Board include rendering financial and technicalassistance to tea producers, manufacturers, growers and also help marketing of teawithin the country and abroad. Research activities at different Research Institutesviz. Tea Research Association (TRA), United Planters' Association of Southern IndiaTea Research Foundation (UPASI-TRF), are funded for augmentation of TeaProduction and Quality improvement. It also regulates and controls differentmarketing activities including that of Tea Auctions and maintains statistical data onproduction, consumption and export.CoffeeIndian Coffee has created a niche for itself in the international market, particularlyIndian Robusta and Arabica varieties which are highly preferred for their goodblending quality. India is perhaps the only coffee producing origin whose coffees arefully shade grown, entirely hand picked and completely sun dried.In India, coffee plantation occupy an area of around 3.5 lakh hectares providingrural employment pre-dominantly in Karnataka, Kerala and Tamil Nadu, whichcontribute about 99 per cent of the total Coffee production. There are 1,78,308coffee holdings, out of which 1,75,475 fall within the small growers' category andbalance 2,833 holdings fall under large holdings (above 10 hectares category). Thesmall growers account for about 71.8 per cent of the total area.Coffee BoardThe Coffee Board is a statutory organization constituted under the Coffee Act, 1942.The Board, with its Head Office at Bangalore, is headed by a Chairman. It has 33members, with offices located at Coffee growing areas viz Karnataka, Kerala, TamilNadu, Andhra Pradesh, Orissa and North Eastern Region besides Delhi, Guwahati,Mysore, and Chennai. The Board also has a Central Coffee Research Institute at

Chikmagalur and Sub/Regional Research Stations at Chettalli, Chundale, Thandigudi,

Natural RubberRubber is grown in the States of Kerala, Tamil Nadu, Tripura, Assam, Megahalaya,Nagaland, Mizoram, Manipur, Goa, Andaman & Nicobar Islands and CoastalKarnataka. Rubber plantations are spread over 5.97 lakh hectares in the country.The production sector of the country is dominatedRubber BoardThe Rubber Board is a statutory body constituted under the Rubber Act, 1947 with aview to promote the rubber industry in the country. The Board, with its Head Officeis located at Kottayam, comprises of 26 members including the Chairman, who isthe Chief Executive. The functions of the Board broadly are undertaking, assisting orencouraging scientific technological and economic research, imparting training tostudents/growers on improved methods of cultivation, manuring and spraying,rendering technical advice to the rubber growers, improving marketing, collectingstatistics from owners of estates, dealers and manufacturers, securing betterworking conditions, providing/improving amenities and incentives for workers.TobaccoIndia produces about 600 million kgs. of Tobacco annually. Of this, 30 per cent is(Flue Cured Virginia (FCV) Tobacco and the rest is non-FCV Tobacco such as Biddi,Natu, Burley, Chewing Tobacco, Hukka, Cigar and Snuffs. On an average,approximately 50 per cent of the FCV tobacco is used by the domestic cigaretteindustry while the remainder is exported. In India, about 5 million farmers areengaged in cultivation of tobacco and about 30 million people are dependent on thetobacco industry, either directly or indirectly.Tobacco BoardThe Tobacco Board was constituted in 1976 with the objective of promoting theplanned development of the tobacco industry. The Board regulates the production,curing and marketing of FCV tobacco. It also monitors fluctuations in marketdemand, both domestic and international for FCV tobacco in order to help indevising anappropriate market strategy. In addition, it conducts extension anddevelopmental programmes for the benefit of the growers. In essence, its functionis to further the interests of the growers, manufacturers and exporters of FCV

tobacco. The 26-Member Board is headquartered in Guntur (Andhra Pradesh) with

subordinate offices at Bangalore, 4 Regional Offices and 29 auction platforms.picesIndia has a long history of producing and exporting Spices. The world trade in Spicesis estimated around 7,50,000 tonnes (2005-06) of which India's share is 42.74 percent in quantity terms. The total production of Spices in the country is estimatedaround 40.39 lakh tonnes (2004-05) and the area under cultivation is estimated at25.25 lakh hectares (2004-05). While almost all States produce Spices, theimportant States accounting for sizeable area and production are Kerala, Karnataka,Tamil Nadu, Andhra Pradesh, Rajasthan and Maharashtra.Spices BoardThe Spices Board Act, 1986 assigns to the Spices Board the responsibility of exportdevelopment of 52 Spices. Some of the major spices among them are Pepper, Chilli,Ginger, Turmeric, Cardamom, Coriander, Cumin, Fennel, Fenugreek, Celery, Vanillaand Saffron. The Board is implementing a number of schemes aimed at exportdevelopment of Spices with a view to meet international standards and promotionof export of value added Spices. The Board has well established quality evaluationand upgradation laboratory at Kochi which is engaged in surveying the quality ofspices procured form different producing and marketing centres. It offers training forquality upgradation to growers and exporters and undertakes physical, chemicaland biological analysis of the samples brought by the exporters.